In the course of globalization and FDI multinationals have to consider the specific cultural impacts on management. Employee behaviors and values differ across cultures. Cultural differences call for differences in management practices to ensure financial performance and growth. In view of China and Austria, the first research question which this paper will try to answer is: •Which participative leadership style is preferred and perceived in the two cultures? Although most cultures consider leaders who provide task-related and socio-emotional activities as effective, distinctions remain due to culture-specific perception differences when varying the combinations of these two leadership functions in order or temporality. Casimir

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